1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sladkih [1.3K]
3 years ago
6

A company issued 6%, 15-year bonds with a face amount of $67 million. The market yield for bonds of similar risk and maturity is

6%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Chemistry
1 answer:
mr Goodwill [35]3 years ago
8 0

Answer:

Bond is expected to be sold at the face value .

Explanation

In cases where market interest rate of bond is lower than coupon rate of bond, the bond is issued at a premium. Reason being that company is giving higher  interest rate on bond , this higher rate of interest  increases the price of bond, thus, bond is issued at premium.

In a scenario where market interest rate of bond is higher than coupon rate of bond, the bond is issued at Discount. This is so in that company is not returning more than market rate, therefore, to compensate that, the sale value of bond is usually lower than face value.

If the Market rate and coupon rate is equal , then bond will be issued at face value.

Considering the given question, Coupon rate of bond is 6% and market rate is also 6%. In this question , Market yield is considered to be market rate .

Therefore, there is no need to calculate present value of interest payments and redemption value at maturity to calculate price of bond.

You might be interested in
Describe the structure of our galaxy, including its spiral arms.
gulaghasi [49]

Answer:

Most spiral galaxies consist of a flat, rotating disk containing stars, gas and dust, and a central concentration of stars known as the bulge. ... The spiral arms are sites of ongoing star formation and are brighter than the surrounding disc because of the young, hot OB stars that inhabit them.

Explanation:

6 0
2 years ago
Read 2 more answers
Which of the following are the types of RNA?
Andrew [12]

Answer:

Explanation:

Of the numerous sorts of RNA, the three most well-known and most commonly examined are delivery person RNA (mRNA), exchange RNA (tRNA), and ribosomal RNA (rRNA), which are show in all living beings. These and other sorts of RNAs essentially carry out biochemical responses, comparative to proteins.

5 0
3 years ago
Read 2 more answers
A) What characteristics of physical properties distinguish metals from nonmetals?
salantis [7]

Answer:

The answer to your question is:

Explanation:

a)

Metals: are shiny, malleable and ductile, they can conduct electricity and heat,  form cations in aqueous solutions.

Nonmetals: non-lustrous, brittle, not good conductors of heat and electricity, form anions in aqueous solutions.

b)

Metals are located in the left side of the periodic table

Nonmetals are located in the right side of the periodic table.

c)

Metal are use to make pans because they are good conductors of heat and also are malleable and ductile.

Nonmetals are used to make sleeping bags and coolers because they do not conduct heat so they can isolate matter.

6 0
3 years ago
BRAINLIEST ASAP!!! Help
Andru [333]

Answer:

N2C14

Explanation:

<em> determined the bond type by looking if it is a metal or nometal</em>

<em>Ionic Bond:NM+M</em>

<em>Covalent Bond:NM+NM</em>

7 0
3 years ago
Which phase of matter is distinguished by a superheated gas that emits light?
mariarad [96]

Answer:

I think it is Plasma

Explanation:

7 0
2 years ago
Other questions:
  • 1.6 moles of phosphorus, P8 reacts with oxygen gas to form tetraphosphorus decoxide. How many grams of P4O10 are formed?P8 + 5O2
    5·1 answer
  • How many moles of Li3N will be created using 0.24 moles of Li in the given reaction? 6Li + N2 2Li3N 0.04 moles 0.08 moles 0.12 m
    10·1 answer
  • NEED HELP ASAP PLEASE
    9·2 answers
  • Copper (II) oxide reacts with carbon to form Copper metal and carbon dioxide. If 365 grams of Copper (II) oxide were reacted wit
    12·1 answer
  • *finished the test its B* In a science lab, a student heats up a chemical from 10 °C to 25 °C which requires thermal energy of 3
    11·1 answer
  • In the formula C = 2r, C stands for
    7·1 answer
  • Precautions when using a laboratory thermometer​
    11·1 answer
  • What is the molarity of a nano3 solution if 25.0 ml of a 0.200 m nano3 solution is diluted?
    15·1 answer
  • The metric system is also known as the
    11·2 answers
  • Help please. a container has a mixture of iron fillings and sand.​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!